Fukushima crisis encourages PV growth in Germany, Italy

Both Germany and Italy are swiftly reacting to the Fukushima nuclear crisis, according to Henning Wicht, senior director and principal analyst for photovoltaic systems market research firm IHS iSuppli.

“Germany responded quickly by shutting down seven of its oldest reactors, potentially boosting the prospects for renewable energy in the country. Meanwhile, Italy indicated it might upgrade the role of solar within the country and accept higher volumes of sun-powered energy,” he expalined.

According to Wicht, should a decision to abandon nuclear energy be reached in Germany, renewable energy will benefit considerably, with PV carried along for the ride.

The market research firm believes that one possible course of action is that Germany could increase the annual PV installation target to 5GW annually, up from 3.5GW now, increasing the long-term outlook for solar.

IHS iSuppli expects PV installations in Germany to follow a similar pattern to that of 2010.

Italy has experienced a significant slowdown in PV installations this year, because of the government's announced plans to prepare new FiT rules by early June. The government has also put a hold on all plans for future nuclear power stations for the next 12 months, while it re-evaluates the role of nuclear energy for the country's future energy needs.

The market research company expects the Italian PV market to develop very positively in 2011, with an expected cap of 1.5 to 2.0GW from 2012 onward, a better scenario than many expected.